Federation of BiH must transfer 14.5 million to the account of Republika Srpska, decision supported by federal minister Toni Kraljević

From the Budget of the Federation of BiH, 14.5 million marks will be transferred to the treasury of Republika Srpska in the coming days. This decision was made on September 4 by the Management Board of the Indirect Taxation Authority, writes Istraga.

“On account of the first temporary settlement of the remaining amount of indirect taxes for 2023, the Federation of Bosnia and Herzegovina is obliged to pay Republika Srpska a total amount of 14,562,127.93 KM,” states Article II of the Decision on temporary settlement between users of indirect tax distribution from the single account of the Indirect Taxation Authority for 2023.

The temporary settlement, as stated in the decision, is carried out at the expense of current revenues from indirect taxes on the Single Account of the Indirect Taxation Authority belonging to the Federation of Bosnia and Herzegovina, by transfer to the account of Republika Srpska. The money will be transferred to the RS account on the eighth day after the publication of the decision in the Official Gazette of BiH. The decision was published on September 8.

This settlement refers to the period of April, May, and June 2023. Namely, the Management Board of the ITA determined that the Federation of BiH had lower final consumption than estimated by the temporary coefficients for the second quarter.

Thus, these 14.5 million KM that the Federation will transfer to Republika Srpska refer to the period April-June of this year and have nothing to do with the 60 million KM that RS, according to estimates by the finance minister of that entity, Zora Vidović, will receive based on distribution according to new coefficients to be applied in the coming period. We remind you that at the same session of the ITA Management Board, a proposal was adopted to determine the coefficient for the distribution of money from indirect taxes.

The coefficient for RS was increased to 34.44 percent, and in the coming period, it should receive about 60 million KM more than under the previous distribution. According to the new decision, the coefficient for the Federation of BiH was reduced and now stands at 62.01 percent, while under the previous distribution it was 63 percent.

These decisions were made after Srđan Amidžić, a cadre of SNSD, was appointed Minister of Finance of BiH. Amidžić thus became, by function, the chairman of the Management Board of the Indirect Taxation Authority, whose director is SNSD cadre Zoran Tegeltija.

Incidentally, when it comes to decisions on the distribution of money from indirect taxes, all three finance ministers (state and entity) must vote. In addition to Amidžić and Zora Vidović, the federal Minister of Finance Toni Kraljević (HDZ BiH) also voted for the decision.